Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
ARCA flashed on the bid for a minute there, and how WORL and INTL have been moving, this typically indicates one thing. We have electronic trading firms, running algorithms for HFT action now; I am guessing to close the chop of the bid and ask spreads. Only problem - they force buys on the ask and sales on the bid for impatient traders, by beating your bid/ask out by .0001 usually. They typically end up encouraging higher amounts of bid whacks than ask slaps, and result in larger naked short positions built, whenever I have seen them become involved significantly. They can typically become more detrimental to a stock without heavy buying pressure and over exaggerate price drops by the forcing bid whacks instead of sales on the ask when people get nervous about their sales orders not being fulfilled. Then there is still the problem of the naked short positions opened by these firms and having to fulfill their orders without losing money. I hope we get a positive catalyst from the company soon.
MM's are scrambling the bid/ask spread all over the place right now. Particularly WORL and INTL. Interesting movements between these two alone. Quite entertaining, really. This looks like it should regain most of the loss shown, if not turn a light green day by close.
That is incorrect per the filing of the terms of the agreement Hawksfan. The shares have to be kept on reservation in the case of new investor/preferred shareholder conversion. The company itself does not have significant availability to sell shares. Also any conversion by preferred shareholders must be reported within a timely manner - which will come in the form of another filing if this is actually share conversion. However, considering IB had over 200k shares available for short selling and is now down to 10k available, this is obvious somebody is short selling in attempt to cause a panic washout (also in a time when not much volume is required for price manipulation). With people buying up lower prices now, though, the short sale may have gotten a bit overzealous. The company did not just do an R/S to be able to dilute, though. Please read through the full filing before attempting to misinform the board.
This definitely looks like a short selling push, considering the low volume, and the timing in which these share blocks are being sold off. If the new investors had converted preferred shares to common stock, the company would have been forced to release the news of conversion. If we don't see a PR/filing of conversion, then we can assume either panic sales or manipulation attempts in light of low volume and lack of buying pressure. I assume a recovery of price to occur in the afternoon session without evidence of significant abandonment of shares by retail stock holders.
Grazie mille! I will try. Just depends on my available time, as well. Just posted another response to our friend who is appropriately named considering recent display of his thought process and attitude. Shares still are finally becoming available to trade for those that have been holding for a while. Still movement on very low volume here. Hopefully we hear something from the company soon in terms of progression or effect of capital infusion on the current business model. We do need some information to give us a decent catalyst for increased buying pressure. This week is most likely going to slowly drag by, with considerably low volume and not very much significant price movement/action. As long as folks aren't abandoning shares in fear of possible dilution, though, I would expect this to hold well for next week's trading movements. The current movement still looks like just attempts at low volume manipulation for the sake of appearance of loss of value to scare people into selling into either people that want cheaper shares, or have the need to cover short sales positions. Some will be available for shorting through offshore trading platforms by now (suretrader or interactive brokers), so they will definitely take advantage when they can. It could also simply be impatient folks being disappointed the price didn't immediately jump through the roof post split. Either way, I still think we have good chances of steady increase and growth over the finishing quarter of this year - not to mention the impending FDA approval will boost this quite a bit, just because everybody wants that American stamp of approval. I find this funny considering the detailed process in which Israel does their medical research and their significant level of technological advancement. If DRIO is able to place Dario into Brazil's market, this should also boost confidence for product viability; with consideration to Brazil's thorough approval processes, as well.
I personally don't have much expectation on very much significant price actions until the rest of the shares are released. Some of the current volume could very well be attempts to short sell available shares. I haven't checked IB to see if they have anything available to short sell currently. There simply isn't enough liquidity to make accurate predictions at this time, IMO. Short selling would still be extremely dangerous, but I never rule it completely out with how the last two quarters have gone throughout the OTC, in general. Within another week I hope to see the shares fully released for retail traders to be able to fully access shares to continue the earlier patterns, and perhaps have something in the way of news from the company to assist a proper increasing movement for a more accurate valuation of the company and imminent prospects. The small change and share amounts being exchanged currently is far from significant enough to display any proper price valuations, in terms of public opinion and intrinsic company value. Just my thoughts, of course.
You are a day late on replying to that specific post, friend. Most shares in retail hands are still locked from any sort of sale. The low volume shows indications of a lack of the dilution of converted shares that some thought would happen immediately following a split. This typically means that even though the new investors hold the rights to convert their preferred shares - and if they chose to do so, the shares would have to be converted and authorized by the following day, per the filing - have not been converting their shares to common stock for sale. What we are seeing now is the minimal amount of the float that is available for trading barely exchanging hands. Again it appears even the institutional and accredited investors that bought in are holding onto the shares they purchased. A 20:1 split would have been absolutely ridiculous, and caused a panic wash. The terms of the 5:1 split are obviously meant to retain as much value for common stock holders without leaving a minimal amount of shares in their hands - if you think in common sense terms. Something that seems to have escaped your understanding since day 1, when you took an interest in attempts at bashing this stock. This is the obvious progression of events that would be expected after a small R/S, in which shares are still not completely available to trade. The price action still shows an increase from the .09/.45 valuation of what the stock traded at upon close of last week. Please use educated responses within a timely manner to provide productive discussion as to the actions of the stock rather than simple minded thought process only used in attempts to demean the company and its shareholders. Purposeful discussion is much more useful.
It all depends on the amount the MM's have in their failures to deliver, as well as market impact. If they make a significant amount of money off of it, then the SEC will sue the clearing house itself for allowance of trading. I do think they need more regulation and stricter guidelines that should end in revocation of MM privileges and licenses, but they typically keep it low enough to avoid higher fines. Especially after goldman sachs and the lehman brothers fiasco. In single stocks, though, you are correct - typically fines are low and the 13 day close out period allows a bit too much leeway for covering. If the trading practice is shown as "abusive", though, the game changes entirely.
Partial bullish ladder bottom still maintaining closing price above support. Might need one more lightly red doji for chart set for upward movement next week. Otherwise we may be looking at a good possible 10.5% close up tomorrow.
Naked shorts still have a recall period, and if there are more shares sold than exist then MM's can get in trouble for significant failures tp deliver, and the security gets placed on the NASDAQ threshold list. This can also end up carrying fines to MM's if they remain out too long.
I spoke of a short squeeze possibly occurring, but only from MM's holding excessive naked short positions, then being forced to cover to keep from running into significant failures to deliver. No retail short selling at all in those posts. Whenever I speak of naked short selling, it is only in reference to MM's.
You mistake my meaning. When I speak of naked short positions, I am only speaking of MM's, considering naked short selling is illegal for retail investors. Naked short selling is only authorized for MM's for the sake of establishing liquidity and providing a market for securities. It may still be abused lightly at times, but if too obvious the SEC fines them. Otherwise I don't think there are many people foolish enough to short here either. I wasn't speaking of them at all, though.
Only problem is they haven't been able to force any major sell off. The naked short positions currently should be at relatively low levels. Without more significant volume, though, they open up the bottom price with the lack of new buying pressure simply because they can. The ridiculous fear of the R/S has caused a lot of hesitancy for new and inexperienced traders that can't properly read a full filing to see the full scope of what is actually occurring. So the MM's can try, but there really isn't enough room in the float to allow them to trigger any significant sales to fill consistent naked short positions prior or reload for future liquidity establishment.
They are then either forced to pass it on to other MM's that do have shares or build a larger naked short position. Volume will remain low without more retail action, until other investors (retail or institutional) take more of an interest in buying it up. If they cannot establish liquidity lower, then they will have to begin attempts at increased price levels. This takes a little while, though. Sometimes they end up forcing a liquidity trap and pushing themselves into a short squeeze, or risk significant failures to deliver (for which they can be fined). Since this has held support at approx 9-10 cents so strongly after the announcement of the new business model and coming changes to S/S, I would assume they aren't trying to dig themselves in too deep. So it could be more of a waiting game until more news from the company, or people get impatient or scared enough to divest themselves of shares held. The people that currently hold shares, though, have also locked the float up rather tightly. So if higher volume pushes in, then this could turn into a rapid spike of the price and then liquidity will be back as people begin selling at their target price or selling smaller blocks to begin locking away profits and riding their "free shares", or sell higher in hopes of a price drop to reload more shares for the same dollar value.
Also might be an indication the MM's are out, or very close to running out, of shares to buy and sell. They are fishing for where the liquidity range is, as well as probably trying to cover small naked short positions that remain open from the last week's trading action.
Normal price action for the DRIO's morning trading rounds. Very typical before a rise into the afternoon.
It really cracks me up when I see somebody trying to use VNDM as their MM to scare people. 34k shares at .12? Silly to pay the extra money for that specific selection of MM's, and quite ridiculous. Someone with an offshore account thinks they are funny, I suppose.
Many stocks that do an R/S on the otc do react that way, but they also usually carry a disgusting ratio of an R/S and have no other goal aside from allowing further dilution due to the awful terms companies accept or propose. DRIO is not nearly the same. The reason for the R/S is clear, and the terms have been extremely well planned. I didn't find much negative in the company's actions and proposals here. R/S are supposed to be for the purpose of maintaining or returning shareholder value, in all actuality. It is just more typically seen as a tool for the opposite, and only covering the company officers' and noteholders' interests on these levels. It simply is not the case here.
A baseless one, then? I am very curious, as I am sure many are, how you might have reached such a conclusion. Do you even have an understanding of what is occurring with the new investment process, and why that seems to be such a ludicrous prediction? DRIO and the new people involved in investment make that a near impossibility.
Thank you, sir. I would encourage everyone to take the time to read through the full filing, and confirm for themselves what I have stated. It really does cover every angle possible, and is very complete in its purpose. A large step for this company in its maturity and recent growth.
To .01? That is a curious statement. What exactly do you have to support this outlandish idea (or hope) of yours? Nothing in the price action of this stock shows that even being a remote possibility. Do you have access to the Level 2 information to see the MM's on the bid and the amount of shares that would have to be "bleed" to bring it to .01? This hasn't even been able to go under .08 after the announcement of recent business dealings. Please let us know, in your finite wisdom, why you think DRIO would go to .01 prior to the split.
Short sellers know not to mess with this anymore for one reason - it has been tried and the base is built too strongly for it to be broken. It is also obvious the float is nearly locked solid. They know another rise is coming and do not want to risk the possibility of losing at least the amount they would spend in attempts to short, and the possibility of causing a short squeeze that would push it even higher than it will come up anyways.
As far as a new PR goes - today is the Jewish day of Sabbath following Rosh Hashanah. They ran together in a 3 day celebration, and are now supposed to be having their day of rest in Israel (sundown on a Friday to sundown on the following day). Only essential business requirements would be followed, if work is done at all. Especially with the turmoil of recent days and weeks, after the Jewish new year, it would be paramount to keep this holiday to the fullest extent they can. How do I know this? My brother is doing his conversion in Israel and I received a message from him before the holiday ensued (the only reason I did not speak to him' was due to a physical therapy appointment making me miss his call).
The low volume is most likely a combination of the above two factors with the fact it is still a Friday and a slow trading day in general, or characterized by sell offs as day traders and short term players get out before the weekend. I think the lack of sales and low volume, with the decline in short sales should be an indication of the strength this is expected to rise on Monday.
For those confused by the terms of investment - it is not confusing, but actually a much better deal struck than the last financing position of February. It does not allow for the issuance of more shares in the event of a price drop as the last did, and is issued in the form of preferred shares that do not allow for a higher rate of conversion than the amount initially invested in the short term. They also only get dividend payouts equal to common shareholders' and selling off shares entitles the main investor to less control of what happens with his $3 MM that he put in. The full filing, if read all the way through, has every provision put into place to protect the company before the new investors, and sustains a higher level of equality in financial gain between common stock holders and preferred shareholders. It is extremely thorough, because it does appear they learned from the prior deal made that had such dilutive effects, the usage of the financial consulting firm, and I would believe Edery's experience of building networks and companies. There would be no use of Edery ruining the company he just made a substantial investment in, as he would lose money and mar his current reputation if he did. There are also concise statements as to what happens to any personnel directly involved in the company that would ever try to spread false information or publish false PR's, along with insurance against such action. The R/S, to me, shows a lack of will to inflate the float, but rather to maintain it at a lower level and return the price to a more accurate representation of the intrinsic value.
Good luck all DRIO holders, may we not need that much. I still believe that good things are coming soon, to include an increase in shareholder value without the negative terms that many are trying to convince others are imminent.
A 490 share paint isn't really a good way to judge a drop. Don't be surprised when this pulls it's usual afternoon upswing after a morning sell down attempt. Last push looked like an oversell, and this is before any preferred shares can even be converted. That means shares are still at the same amount, and obviously no further dilution has yet been made possible. Not a whole lot of sense in "next stop .05". Obvious MM movements to block immediately following attempts to trigger a panic wash, and nobody else really appears to be fooled. DRIO isn't one of those stocks that you will find usual levels of fear and frustration. Good luck, though. Personally just wouldn't suggest betting on a retrace to .05.
Did anybody else read the entire filing? Excellent conditions set forth to protect the company and equity protection for common stock and preferred shareholders as well. I will break some more of it down in the morning. Need to get some sleep. Quite possibly the most thorough filing I have read on the OTC. DRIO still looks better now. Not much to worry about. It's tough reading to get through it all, but well worth it. Have a good night folks!
A 5:1 R/S does not reduce the value of overall shares held. The monetary value will remain the same, just a change in share amount. The infusion of capital along with the new affiliations the company has would be the driving factors. The expectation is that these affiliates may also desire more control or shares of the company, and could also cause a rise in share value along with some hope of increasing values leading to an up listing to higher markets - as long as the requirements are all met. Another driving factor would be the proceedings with the FDA, and the fact that the investors were attracted without necessity of brokerage sought financing, but instead private interest by the main investor along with the added institutions / private parties. So, even if there is an R/S the price could rise, and without considerable concern of heavy future dilution measures due to the fact that the main investors would give up places on the board of the company in sales or conversion of preferred stock. Especially with the bulk of investing coming from the specific private party, assumptions hold that he would not want to waste his money or take the risk of somebody else making mistakes he has the experience to avoid.
What are you responding to, exactly? This post is confusing. Are you saying you suspect a halt or suspension? This is unclear, or perhaps in reply to the wrong message? Who exactly would be "shut down" by the SEC? This is not in response to any article of any sort.
It appears the institutional representation is still playing the game here and pulling up their bootstraps. MM layout is nicely spread, with the baseline still holding. Perhaps there may have been some attempts at short selling, but does not appear to be the panic sale or washout that some expected. I suppose more folks actually read the full PR to gain some perspective. I find this to be a positive sign. Especially with the Jewish holidays upon us, in which most business dealings are ceased in Israel, unless absolutely necessary. The true market valuation will most likely begin to become apparent next week, although it seems we are off to an excellent start despite the bashers of DRIO, and all those that may have been terrified of shadows and whispers.
You can't seriously think that the Edery you provided has anything to do with, let alone any knowledge of medical device solutions. I suppose common sense hasn't dictated it to you so here goes:
The Dr. David Edery I highlighted actually has an understanding of medical devices and the medical device marketplace that DRIO is currently breaking into. He also is an Israeli resident, and has spent time specifically bringing Israeli tech to Latin America through a network he built. This would put him in the exact position to understand the depth of a $3 MM investment in a company such as this, while also giving him access to the other Israeli firm LEAD and appointing Rami Yehudiha to assist in sales and marketing for DRIO. The man you point out has a lifelong dream of creating a game for Xbox to make people "happier". Hmmmm.... Yes, common sense would say that it is easy to delineate between the two. Only fools would expect the opposite relationship.
As far as the exercisable warrant- these wouldn't tend to "cap" the price, considering the investors (institutional and otherwise) are going to want more than the price they paid for their shares. Yet again - common sense would say that they would want the price to rise as much as possible for the best ROI, not have it topped out at the price they paid for them. Their interests would lie in helping DRIO gain ground in the global marketplace, not burning the share prices down (the interest in dropping the price would come beforehand, so as to get as many shares at the cheapest price they can). As far as the R/S, the value still stays the same once split, just share amount changes. The $ 4.2 MM in financing should set DRIO up for a very viable product launch capability. Although short sighted "investors" will still just try to point out the negative points in the PR, there is much more there than a few numbers and 4 sentences. Also, here goes common sense again, if the main private investor has serious connection to Latin American government agencies, as well as CEO'S of hospitals and larger medical facilities, then he would most likely use this to his advantage to promote the product of the company he just made a substantial investment in. I suggest taking a look at Brazil's medical device industry and market to get an idea of what this could also mean for DRIO's future. It is a rather high number. So, actual investors rather than simple minded and fooled day traders, actually will probably take a look at this a second time, especially with such a large infusion of liquid capital in a firm already operating and producing a viable product. The details should help connect these dots with, wait - common sense.
As far as short sellers - With the amount of people that may be convinced to sell just because they can only read a few words out of an entire press release, it is possible folks may attempt to sell down to the base price that investors are receiving their shares for a 40% profit margin. Please remember as well, though, retail traders will need to find available shares to sell short. Most shorting in OTC stocks occurs by MM naked short selling, not all retail. I would doubt that there would be many available in the event of a panic sale. With institutional investments growing here, though a little more sense would say that this could end up being a horrible idea if the institutional investors, who have much more money, decide they want the price up on this stock instead of down. There is a very large possibility of a short term downside, but beware of intelligent investors adding shares for the longer term gains and potential of a company like DRIO and the price getting away from them from an oversell and subsequent squeeze on the price, especially after the R/S (where many squeezes have been seen to happen).
Also remember the more warrants are exercised and sold, the less representation Edery will be entitled to appoint. Typically somebody making a multi million dollar investment in a company would rather hold onto as much control as possible, than to risk throwing away such a substantial amount of money along with having the company he just invested in lose credibility from all its current/future shareholders. So there you have it - the "common sense" version, or you can choose to believe that the company is just taking on somebody trying to create an Xbox game or games for other platforms as a credible investor, while trusting him to make some serious decisions as to the future direction of DRIO (a medical device company, in case any have forgotten). Good luck, as always.
Just took a quick background search. :) Thank the internet. Lol. That puts me at ease, with the R/S and such. Especially the network connections throughout CEO's of hospitals and a lot of Latin America. This looks like imminent new market penetration in yet another globe region. This is going fast. The US is going to end up the last piece of the puzzle.
Doing business with David Edery is by no means an act of desperation. The R/S is only part of the deal. Here:
http://www.medicaltec.co.il/9001.html
Background on Mr. Edery. Doesn't seem like a bad idea to have a man with his reach and experience on your board, and backing your company. Especially if he takes DRIO into Latin American countries as well. He is in the business of building value, not killing companies.
Agreed. They would have if there wasn't this news drop. However, we know that the new company won't be selling below what they bought in at. They also have 4 years to exercise warrants. Take a look at this though, about David Edery:
http://www.medicaltec.co.il/9001.html
I don't think Mr. Edery seems the type to kill a company he just bought into. It appears he also has the connections to introduce this into Latin American markets.
People immediately think R/S is bad no matter what the case. It is more the psychology than the reality of it. Public reactions are just as they usually are. NASDAQ up listing would be possible. I wouldn't think the investors bought in to immediately resell at these prices or even post R/S prices, either. It would be a better idea to hold and wait for the climb as DRIO continues gaining ground in global markets. We know the base value they got was .099, though, so they won't want to sell under that, for sure.
Hourly over the week and month. Daily is still low. The announcements of R/S (even though the R/S usually means an increase to share price for value equivalence, that many forget) is going to make some run and sell, as well as fear of immediate dilution measures. I don't know if it will run for days.
Just found it. In my car. Not definite dilution yet. They are able to exercise warrants over the next 4 years. Stock R/S and terms are definitely pretty bad for short term at least. Value will still transfer in R/S. However, there are bound to be panic sales. Wow, ugly timing. The infusion of capital is nice, but I don't think they will want to exercise their warrants and flood the market immediately.
That should be exact timing for a draw, even with a continuous uptrend tomorrow, to allow base to continue building and RSI to cool. By Friday we will see a drop of some sort unless news runs her through the roof soon. Hope you get the best prices you can!
Not much allowance on order fills at close. Same old games. Small group just trying to run her because the low volume movements, and make the candles and charts read a drop for tomorrow. They couldn't push hard enough for a bearish harami cross, though (what I think they were trying). Signal still pushing for overall uptrend again tomorrow, from candle history on the stock. Still riding upper channels over middle bollies and 50 SMA on the monthly/weekly per hour break down. Also DRIO is still a solid company with product rollouts and sales to support globally. Not too much to worry about aside from hoping to grab more soon. Good luck to everybody here!
Somebody trying to burn the tech read at last second. Allowing the new MM'S to load. Definitely games and manipulation attempts.
Nope, still nada, saving for tomorrow bid support. Candles should read another bullish signal, but small group attempt at price push could make for a bumpy ride without further news from the company. Since the game failed today, tomorrow is bound to be full of more if the MM'S increased on naked shorts again today.
Waiting for the 7-12 minute window. See what can be done.
This last 20 minutes will give us a nice peek into panic short covers, hopefully, and then their attempts at manipulation could result in a gap tomorrow up, with a squeeze push up. Again, will most likely be watching for more attempts at suppression. Watch the L2's. Interesting book reads.